have you checked the warranty on the card? you might be able to get a replacement.
I wouldn't assume they say it's broken just to make a profit, they don't make that much money on it

as someone else mentioned, the fact that it's displaying "freaky" signs during boot tells me the card itself is busted. check the card for "popped" transistors and make sure the card slot is clear of dust and other filth. then try to reseat.
it would help if you had a friend with a gfx card, so we can rule out motherboard issues.
you should think about getting a new power supply regardless of wether or not the PSU has anything to do with this. they're not that badly priced nowadays, and it's better if you want to upgrade in the future.
first stop though, find someone with a card you can borrow to rule out motherboard..second, check the warranty on your card and arrange a replacement if you can

hope this helps..